Suzlon Energy Ltd shares continued their downward move for the third straight session on Monday. The stock slipped 0.56 per cent to settle at Rs 62.15. At this price, it has slumped 27.77 per cent from a one-year high value of Rs 86.04, a level seen on September 12, 2024.
Recently, Suzlon's CEO of New Business Ishwar Chand Mangal resigned after being associated with the company for 28 years. In terms of earnings, the renewable energy solutions provider reported a 95.72 per cent year-on-year (YoY) surge in its second-quarter consolidated net profit for the financial year 2024-25 (Q2 FY25).
During the quarter under review, profit came at Rs 200.20 crore as against Rs 102.29 crore in the year-ago period. Revenue from operations moved up 47.68 per cent to Rs 2,092.99 crore in Q2 FY25 from Rs 1,417.21 crore in the corresponding period last year. Suzlon said it posted a consistent YoY growth in EBITDA (earnings before interest, taxes, depreciation, and amortisation) at Rs 294 crore.
On technical setup, immediate resistance on the counter could be seen in the 66-72 range and support may be found near Rs 60. An analyst advised to 'avoid' Suzlon at current levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon has corrected around 30 per cent from the recent peak of Rs 86. Technical indicators have cooled down from overbought towards the oversold terrain amidst the significant selling. On the level-specific front, Rs 60-55 is anticipated to cushion the fall while a stiff resistance is placed around the Rs 70-72-odd zone. And, a decisive breach could only trigger fresh momentum in the comparable period."
Kushal Gandhi, Technical Analyst at StoxBox, said, "The ongoing corrective phase is marked by erratic movements and relatively high selling volumes, with the price action forming a lower high structure and showing no signs of recovery. Currently, immediate support is in the range of Rs 56.50-55.50. Maintaining a position above this range will be crucial to prevent further weakness. We recommend avoiding Suzlon at the current market price as it is at a critical juncture."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be Rs 59 and resistance Rs 66. A decisive move above Rs 66 level may trigger a further upside towards Rs 70. The expected trading range will be between Rs 58 and Rs 70 for the short term."
Sebi-registered research analyst AR Ramachandran said, "Suzlon Energy is bearish but also oversold on daily charts with immediate support at Rs 58. Investors should buy only if a daily close is above the resistance level of Rs 66.6 for an expected target of Rs 79 in the near term."
As of September 2024, promoters held a 13.25 per cent stake in the company, which is slightly lower from 13.27 per cent in the previous quarter.